Sean Barrett (Independent) | Oireachtas source

This raises a major point which we do need to address, namely, the tax avoidance industry. As Senator Burke stated, it may be more appropriate to finance legislation, but the Minister for Social Protection, Deputy Joan Burton, was particularly keen on targeting this when she was in opposition. A major scandal emerged in the UK where the head of the student grants agency had such an arrangement and was engaging in what is called tax avoidance, which deprives the Exchequer of large amounts of money. It is distinguished by an entire body of tax lawyers and accountants from tax evasion, which is criminal. At all times the Government should be against these tax avoidance schemes.

The Carter commission in Canada argued for the simple rule that a dollar is a dollar is a dollar and if it has purchasing power it should be taxable, regardless of the source. It is also an issue in the United States in that one of the presidential candidates because of his sources of income probably pays approximately 13% income tax, which is much lower than the average worker in the health service.

The amendment is sounding a caution. The Leader wants to discuss these issues in a pre-budget debate, but tax avoidance schemes such as this got away scot-free in last year's budget while special needs assistants and others doing important work did not. It is very important that the issue is raised now and perhaps the Minister will bring it to the attention of his Cabinet colleagues.